OD Plans $750 Million Investment in Capacity and Capital Expenditures for 2024

Old Dominion Freight Line is investing $750 million in its LTL network in 2024 to build additional capacity. The capacity expansion will allow OD to continue serving shippers with the high quality and service they expect from the industry leader.

Since 2014, OD has invested $5.0 billion in critical areas such as service center expansion, fleet enhancement, and information technology system upgrades. These strategic investments, coupled with OD’s commitment to the OD Family of employees, position the company strategically to consistently deliver the premium service customers rely on.

Last year, OD’s capital expenditures reached $757 million, and it expects to invest an additional $750 million in 2024 across three areas: real estate, equipment, and technology. Here’s a breakdown of the planned investments:

Real Estate and Service Center Expansion Projects - $350 Million

OD plans to inject $350 million into land acquisitions, new or expanded service centers, and facility enhancements. With 258 service centers across the continental U.S., OD is dedicated to continually improving its facilities to improve shipping lanes and transit times. In LTL networks, increased physical space allows carriers to handle business growth efficiently and improve service in markets that are important to shippers.

In 2023, OD opened two new centers and expanded four existing service centers, and it has plans for another active year of real estate development in 2024. The company announced on January 31^st that it plans to open a handful of new service centers in the calendar year.

Since 2014, OD has invested a substantial $2.1 billion in expanding its service center network, introducing 40 new facilities while increasing its door count by more than 50 percent.

Tractors and Trailers - $325 Million

$325 Million this year will go towards purchasing the latest equipment from OD’s OEM partners to ensure fleet reliability. A well-maintained fleet enables OD to operate efficiently, keeping maintenance times low, transit times competitive, fuel efficiency at its peak, and ensuring a low claims ratio. OD is often seen as an extension of a shipper’s business, and it’s important that shipments arrives on-time, damage-free and in well-maintained equipment.

Information Technology and Other Assets - $75 Million

Continuously striving for operational efficiency, OD will invest $75 million in information technology and other assets. OD is helping shippers digitize their shipping process by building API connections, enhancing tools such as freight tracking and tracing technologies, and enabling transparency from pickup to delivery. These investments are made with the goal of improving accuracy in every shipper transaction while giving them the flexibility to do business however shippers prefer. Technology gains in LTL have improved areas such as billing accuracy, appointment scheduling, compliance, and more visibility into freight movement.

For many years, OD has invested in the future, which is vital to staying ahead of the shipper’s needs. OD’s industry-leading network expansion, new equipment, and technologies enable the company’s commitment to helping keep promises.